“You’re spending 50% of your disposable income on a house a postman owned in 1917.” Rory Sutherland just delivered a brutally funny takedown of London property madness. He pointed out that people with good jobs are now paying enormous sums for a three-bedroom house in Fulham that’s essentially a boring, low-quality building — the real value is almost entirely in the land and planning permission (about 90% of the price). Meanwhile, we live in an incredible technological age where you can buy jet skis, hot tubs, and amazing consumer goods — but most of our money goes into owning a “shit house” in a good postcode. Rory’s friend has a flat in the Barbican and he gets that — it’s actually an amazing place to live. But most London housing? Dross. Rory’s friend has a flat in the Barbican and he gets that — it’s actually an amazing place to live. But most London housing? Dross. It’s like paying £60,000 a year for the parking space while driving a 1970s Ford Cortina. What’s the most ridiculous thing you’ve seen people spend huge money on just for location?
